New data from a Landbay survey indicates that the majority of buy-to-let landlords intend to increase rents in the coming 12 months.
Nearly 85% of landlords surveyed admitted to planning rent hikes, with more than a third (36%) expecting to raise rents by up to 5%, an increase from 27% in the previous survey conducted in 2023.
Additionally, 37% plan to increase rents between 6% and 10%, a figure consistent with last year’s findings (38%). Less than one in ten landlords (8%) are looking to raise rents between 11% and 19%.
The survey shows that nearly half (42%) of those planning to raise rents are landlords with portfolios of 4-10 properties, followed by those with 20 or more properties at 28%.
Exactly half of the respondents self-manage their properties, while 27% rely on estate agents and 20% use professional management companies.
Higher interest rates and increased operational costs are significant factors influencing these rent hikes.
More than one in ten landlords (16%) who plan to raise rents spend over 13% of their rental income on property management. Just under a third (30%) spend 5% of their rental income, while 29% spend between 9% and 12%.
The findings are part of Landbay’s latest survey, which explores existing landlords’ attitudes and intentions, key challenges they face, and their views on upcoming regulations and the future of the buy-to-let market.
Rob Stanton, sales and distribution director at Landbay, said: “Whereas before, rising rents would often reflect the increasing demand for good quality rental accommodation, today’s market now means landlords also have to factor in higher interest rates and operating costs too. With no alternative, many landlords have to consider increasing rent to cover their outgoings.
“As a large number of landlords look at their remortgage options, they can be encouraged by the innovation we have seen from lenders across the buy-to-let market. At Landbay, for example, we have just expanded our like-for-like remortgage range with new 2-year fixed and tracker products – supported by new lower stress testing at just payrate.
“This change to affordability calculations is already proving popular and beneficial for both brokers and their clients.”
